World News: 01:00 GMT Tuesday 14th January 2020. [Hagens Berman Sobol Shapiro LLP via Globe Newswire via SPi World News]
SAN FRANCISCO, Jan. 13, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges Canopy Growth Corporation investors who have suffered losses in excess of $500,000 to to learn if they qualify to recover compensable damages. The lead plaintiff deadline in a securities fraud class action that has been filed against the company and senior executives is fast approaching.
The complaint alleges that throughout the Class Period Defendants falsely represented and failed to disclose that: (i) Canopy had exaggerated and/or overestimated the potential market for its products in Canadian retail stores; (ii) as a result, Canopy had failed to properly account for inventory and demand for its products, leading to inventory write-offs and restructuring charges; (iii) all of the foregoing was reasonably likely to have a material negative impact on the Company’s financial results; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
The complaint alleges that the true details regarding Canopy’s business and prospects entered the market on Nov. 14, 2019, when the Company announced a disappointing 2Q 2020 earnings, blaming the poor results on inventory write-offs and restructuring charges for product returns, return provisions and pricing allowances.
This news caused the price of Canopy Growth shares to decline, damaging Canopy investors.
“We’re focused on recovering investors’ losses and determining whether Canopy executives misstated financials while lining their pockets with excessive compensation,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Canopy Growth and suffered significant losses, .
Globe Newswire: 01:00 GMT Tuesday 14th January 2020
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